Find out how much you can save with solar!

Here’s where you can go solar for $0 down:

What’s a solar lease or PPA?

Solar leases and Power-Purchase Agreements (PPAs) are special programs that help you get solar power for your home without having to spend thousands on the panels. A company will install solar panels on your home’s roof, and then either lease the system to you for a set monthly cost or sell you the electricity for a set price per kilowatt-hour. Either way, the cost is often much less than you would have paid for that energy from your utility company.

Collectively known as “third-party ownership,” solar leases and PPAs can be a great way to start generating your own clean energy without spending thousands of dollars up front! If you live in a green state, congratulations! $0-down solar is likely available in your neighborhood.

Solar options in the green states

The reason these states are so good for third-party ownership is the great renewable energy policy and incentives they’ve put in place to make sure solar is a good investment. In these states, solar companies can lease or sell electricity from the panels to you for cheaper than power from your electric company and still make a small profit on their investment.

How much can you save with a solar lease or PPA?

Here’s how solar leases and PPAs work:

First, you sign a 20-year agreement with a solar installation company. Don’t worry if that seems long: your installation will be warrantied for the entire term.

Then you get panels on your home with no money down, and you pay the company a monthly payment that is less than your monthly electric bill savings. That’s huge! People around the country save an average of about $35 per month on their energy bills with a solar lease or PPA. Here’s how the numbers break down:

With a lease:
If your average monthly bill is about $160 before you get solar panels on your house, a typical 5-kW solar system might save you about half, depending on where in the country you live. The lease payments on that system will be about $45, which means your overall savings are still about $35 per month! Over 25 years, considering the way electric companies typically raise rates, you’ll save almost $19,000 on electricity costs. That’s HUGE!

With a PPA:
PPA Prices tend to start out significantly lower than the retail cost of electricity. Your installer will work with you to design a system that can meet your needs. If you can replace all the electricity you use with solar, you’re looking at a savings of about $35-$40 per month, just like a lease.

Unlike a lease, the cost of a PPA usually rises by about 2-3% per year, to keep pace with the cost of retail electricity. This is where you’ve got to be careful. Although retail prices have traditionally risen by about 3.5% per year, try to get a PPA with a lower annual increase.

Solar options in the grey states

Like we said above, the best states have laws like Renewable Portfolio Standards and Net Metering to encourage rooftop solar and make sure you get full credit for the energy your panels produce. Many of the grey states above are missing one or both of these laws, which makes the economics of solar a little more difficult for third-party owners.

Even in these states, you might still find some good financial incentives to help you take thousands off the cost. And you can still pay cash for a solar panel system, or in many cases get a low-interest loan that pays itself back over time with the electricity savings. Click your state to find out more, or connect with a solar expert in your area to see what options are available to you.

Solar options in the red states

Is your state red? Ouch. Some states—even Florida, the SUNSHINE STATE—have laws that prohibit third-party ownership of solar systems. This usually means homeowners have to finance the cost of solar themselves, although there are often great $0-down loan options available. Solar loans are offered by many of the biggest installers and banks all over the country, so click your state, read about the options you have, and get excited about saving money with solar!

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Solar Power Rocks provides free comprehensive guides to solar policy and incentives for all 50 states and the District of Columbia, along with hundreds of helpful and informative articles about recent solar news and general information related to home solar power. For media inquiries, general questions, or to report an error, you can reach us here.